Gorman-rupp ( (GRC) ) has released its Q1 earnings. Here is a breakdown of the information Gorman-rupp presented to its investors.
The Gorman-Rupp Company, established in 1933, is a prominent designer and manufacturer of pumps and pump systems, serving various sectors including water, wastewater, construction, and industrial applications. In its first quarter of 2025, Gorman-Rupp reported a notable increase in net sales and net income, with sales reaching $163.9 million, a 2.9% rise from the previous year, and net income climbing to $12.1 million, up from $7.9 million in the same period of 2024. The company’s adjusted EBITDA also saw an increase, reaching $29.7 million, reflecting a 5.3% growth.
The company experienced growth in several markets, particularly the municipal and repair sectors, driven by increased infrastructure investment. However, there were declines in the construction, agriculture, and industrial markets. Despite these challenges, Gorman-Rupp improved its gross margin to 30.7%, aided by selling price increases, and reduced its interest expenses significantly due to refinancing activities and decreased debt.
Operating income for the quarter was $22.1 million, with an operating margin of 13.5%, an improvement from the previous year. The company’s backlog of orders stood at $217.8 million, with a slight decrease in incoming orders compared to the record levels of the previous year. Cash flow from operations more than doubled, reaching $21.1 million, which supported a reduction in total debt by $14.6 million.
Looking ahead, Gorman-Rupp remains optimistic about its growth prospects, focusing on leveraging its strong market position and quality products to capitalize on infrastructure spending. The company is committed to delivering profitable growth while monitoring external factors such as tariffs and supply chain dynamics.